The Consumer Financial Protection Bureau (CFPB) recently published an order that establishes supervisory authority over Google Payment Corp.
Google Payment Corp. is subject to CFPB’s enforcement jurisdiction, but CFPB has determined that the company also meets the legal requirements for supervision. The order does not mean Google Payment Corp. has engaged in wrongdoing, and the CFPB is not required to conduct a supervisory examination, a process that helps companies identify and correct potential law violations.
Under CFPB’s current procedures, the agency is required to issue notices to entities operating in consumer financial services industries that are not already subject to a supervisory examination. Entities can consent to supervision or contest the notice. Generally, those receiving notices consent to supervision, and notices usually indicate consumer complaints and other risks to consumers.
The CFPB supervises nonbank entities in industries such as service providers to banks and credit unions, mortgage and payday lending, and others as defined by rule. The agency ensures financial firms comply with federal consumer financial protection laws.
The agency conducted an assessment of its supervision program in 2022 and concluded it was failing to conduct oversight using a specific legal authority to supervise entities posing risks to consumers. It began using its authority and issued procedures to promote transparency.